West uses shield laws to block Rinehart

Gina Rinehart is seeking to force a journalist from The West Australian to reveal his sources.
Photo: Greg McKenzie

by
Natalie Gerritsen

One of Australia’s largest media companies is testing Western Australia’s new shield laws in an attempt to stop mining magnate
Gina Rinehart
forcing one of its journalists to reveal his sources.

Seven West Media’s flagship daily newspaper The West Australian has applied to the WA Supreme Court to have the impact of the new laws on its defence against Mrs Rinehart’s subpoena assessed.

The West’s chief reporter Steve Pennells has been directed to reveal his sources as part of Mrs Rinehart’s ongoing legal battle with her three oldest children, who are battling her for control of the $4 billion family trust.

Hancock Prospecting alleges Mrs Rinehart’s son John Hancock breached a confidentiality agreement by speaking to Pennells.

In the Supreme Court on Tuesday, lawyer Robert Anderson, acting for Pennells and West Australian Newspapers, said the shield laws matter should be dealt with before the main dispute over the subpoena, as interpreting the new legislation was bound to raise complex issues.

Justice Janine Pritchard agreed, directing parties to present their submissions on the laws after Christmas.

WA’s shield laws passed the state parliament in September this year, providing protection for journalists who have promised their sources anonymity.

But they also allow for judicial discretion when it comes to deciding whether to waive protection for sources. Justice Pritchard has remarked that there are “oddities" in how The West’s case could relate to the new laws.

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The West’s editor Brett McCarthy has previously said the newspaper will not be revealing its sources, regardless of the outcome of the case.

The West matter is not expected to heard until early next year, further delaying the action between Mrs Rinehart and her children. Mrs Rinehart is now a major owner of Australian media, controlling around 10 per cent of shares in the Ten Network and 15 per cent of shares in Fairfax Media, publisher of The Australian Financial Review.

West Australian Newspapers merged with the Kerry Stokes-chaired Seven Media Group in 2011, creating one of the country’s largest media entities.

Pennells won the Walkley award for best scoop of the year last week for a story about the dispute between Mrs Rinehart and her children.

Mrs Rinehart’s youngest daughter Ginia, who is siding with her mother, has also subpoenaed former AFR journalist Peter Kerr to hand over correspondence with Mr Hancock.